Convergys profit beats; realigns top management

Wed May 9, 2012 3:45am IST

Related Topics

Stocks

   

REUTERS - Business process outsourcing provider Covergys Corp reported first-quarter results that trumped Wall Street estimates and said Chief Operating Officer Andrea Ayers will become the CEO as Jeffrey Fox assumes the role of executive chairman.

The company also said CFO Earl Shanks, who has been with the company for the last eight years, will quit. Andre Valentine, who had earlier worked as a senior vice-president and controller, will replace Shanks.

The management changes will be effective in the third and fourth quarters, the company said.

Convergys expects its customer management business, in which it handles billings and client service management, to generate revenue of $1.975 billion to $2 billion this year.

It had earlier said it expected the segment's revenue to exceed $1.96 billion.

The company, however, cut its full-year adjusted earnings outlook to 75 cents to 80 cents per share, from 95 cents to $1.00. Analysts on average were expecting 77 cents per share.

January-March net income fell to $26.1 million, or 22 cents per share, from $34.9 million, or 28 cents per share, a year earlier.

Income from continuing operations was 18 cents per share on revenue of $498 million, said the company, which competes with Amdocs DOX.N and Comverse Technology Inc CMVT.O.

Analysts on average had expected 15 cents per share on revenue of $475.6 million, according to Thomson Reuters I/B/E/S.

Shares of the Cincinnati, Ohio-based company closed at $13.03 on Tuesday on the New York Stock Exchange. (Reporting by Siddharth Cavale in Bangalore; Editing by Don Sebastian)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Pricing Controls

REUTERS SHOWCASE

India-China Relations

India-China Relations

India says to defend China border after standoff ahead of Xi visit.  Full Article 

Importing Iron Ore

Importing Iron Ore

As mining curbs bite, India offers market to glut-hit iron ore.  Full Article 

Lower Output

Lower Output

IOC cuts refinery output as rains hit fuel demand - source.  Full Article 

Drug Approval

Drug Approval

Epirus, Ranbaxy win India approval for arthritis drug copy.  Full Article 

Farming and Technology

Farming and Technology

Climate smart farmers get tech savvy to save India's bread basket.  Full Article 

Rajan Speaks

Rajan Speaks

RBI chief Rajan says limiting reliance on foreign debt.  Full Article 

India-Vietnam Ties

India-Vietnam Ties

India tightens Vietnam defence, oil ties ahead of China Xi's visit.  Full Article 

Debt & Equity Deal

Debt & Equity Deal

KKR to lend $175 million to GMR Infrastructure - source.  Full Article 

Preparing for IPO

Preparing for IPO

Alibaba boosts IPO as demand strengthens.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage